Rent Control and Rent Stabilization: Lessons from Germany

Rent control and rent stabilization are hot topics in housing policy debates in across the US due to rising rents, increased homelessness, and housing affordability crises. A recent study published in the Journal of Urban Economics analyzes rent control in Germany, helping Rockville residents and businesses understand how these policies impact renters, landlords, and the broader housing market.
What Are Rent Control and Rent Stabilization?
Rent control and rent stabilization are regulatory measures designed to keep housing affordable by capping rent increases. Rent control typically refers to stringent policies that freeze rents at a certain level, while rent stabilization allows for regulated, modest increases tied to inflation or other factors. These policies aim to protect tenants from sudden and significant rent hikes, providing housing stability and affordability. Keep in mind that policies affecting housing vary significantly by jurisdiction, so if you do a deep dive, it can quickly become complex and overwhelming as you mentally juggle all the pieces. This research looks at a specific situation, which may or may not fully apply to Rockville or MoCo, but does provide a sense of the issues that deserve consideration by the Mayor and Council.
Continue reading →Council Discussion Highlights Complexities of Rent Stabilization

The Rockville Mayor and Council meeting of July 8, 2024 caught my eye because it warned, “The following program contains explicit language. Viewer discretion is advised.” Of course, I had to watch. Near the end of the Community Forum, a speaker expressed his frustration with the City saying, “I hate all of you…and I hope you all get heat strokes” peppered with swearing. Mayor Ashton ably handled the uncomfortable situation by recognizing his anger, empathizing with his frustration, and then asking him to avoid swearing because the meeting should be appropriate for adults and children. The speaker apologized and the meeting moved on.
So what was causing this resident so much frustration? He was upset about the lack of air conditioning and the rent increase at BLVD 44, an apartment complex in Rockville Town Square. His concerns were part of nearly three hours of Community Forum, with dozens of speakers providing comments in anticipation of a presentation about rent stabilization listed later in the agenda. Because presentations do not allow public comments or questions, anyone with concerns had to express them via email in advance or by speaking during the Community Forum.
Many residents supported rent stabilization, highlighting its importance in preventing displacement and maintaining community stability, particularly for vulnerable populations like seniors and low-income families. Some speakers shared personal stories of financial struggles and the impact of rising rents on their lives.
Continue reading →Rockville Council Agenda Includes Major Forest Preservation Updates and Transportation Achievements

There’s something for everyone at the Monday, August 5, 2024 meeting of the Rockville Mayor and Council. They will discuss amendments to the Forest and Tree Preservation Ordinance; rezoning of 5906 Halpine Road to permit construction of residential units (with a floating zone amendment); a budget amendment; authorizing the sale of $27 million in bonds to fund capital improvements; and an acknowledgement of the lack of proper notice for the May 4, 2024 meeting. On the Consent Agenda (items approved without discussion) are subaward agreements, license agreements, a public art project in Town Center, MPDU Program Agreement for the Flats at Northside, and July 8 minutes approval (which was marked as having “explicit language”; I’ll have to see what that was about). The Mayor and Council will also receive reports on Vision Zero and from the Transportation and Mobility Commission.
In March 2023, Rockville’s Traffic and Transportation Commission was renamed the Transportation and Mobility Commission (TMC) with a broader focus on all transportation modes (p. 17+). The TMC provides guidance to the Mayor and Council on multimodal transportation, emphasizing economic development, sustainability, social activity, equity, and resilience. They’ve recommended budget priorities, intersection safety improvements, and updates to transportation plans. For 2024, they will focus on zoning ordinance recommendations, intersection improvements, and public communication. The TMC is committed to building an inclusive, equitable, and accessible transportation system for all Rockville residents.

Rockville’s new Asphalt Art Project, funded by a $25,000 Bloomberg Philanthropies grant and an additional $15,000 from the city, aims to beautify Beall Avenue in the Town Center (187+). Set to start after summer roadway improvements, the project will feature artistic designs painted on the road surface between North Washington Street and Gibbs Street. The selected artists, Chalk Riot, will incorporate community survey results into their designs, highlighting local flora, fauna, and historical elements. The project not only aims to enhance aesthetic appeal but also to improve pedestrian safety and foster community pride. Completion is expected by late 2024.

A public hearing will be held regarding proposed amendments to Chapter 10.5 of the City Code, the Forest and Tree Preservation Ordinance, to align with Maryland Senate Bill 526 and enhance local forestry practices (243+). These changes aim to increase tree canopy and streamline the ordinance’s administration. Key amendments include higher reforestation rates, expanded priority retention areas, and new public notice requirements for forest conservation plans. Additional updates involve improving the replacement standards for significant trees and expanding the use of fee-in-lieu funds for street tree plantings. The amendments support Rockville’s commitment to environmental stewardship and urban canopy preservation, promoting a greener, more resilient community.
In addition to need to align with state law, there are concerns about using non-native tree species in city planting projects. The Forest and Tree Preservation Ordinance currently prioritizes native trees for reforestation and afforestation, but staff flexibility allows for the use of non-native species when urban conditions necessitate. While native trees support local biodiversity and are well-adapted to the environment, they can present challenges in urban settings, such as maintenance issues and susceptibility to pests. Non-native trees are often better suited for urban conditions. If you have thoughts, share your thoughts for this public hearing in person or by email (see below).
The Mayor and Council are conducting hybrid meetings. If you wish to submit comments in writing for Community Forum or Public Hearings, please email the comments to MayorAndCouncil@RockvilleMD.gov by no later than 10:00 a.m. on the date of the meeting.
More details in the 663-page agenda packet are available at https://www.rockvillemd.gov/AgendaCenter/ViewFile/Agenda/_08052024-7248.
Mayor and Council to Discuss City Branding, Revising Ethics Code, and Allowing ADUs

At its Monday, July 29, 2024 meeting, the Rockville Mayor and Council will discuss city branding, a code of ethics, accessory dwelling units, development of 900 Rockville Pike, and regulating tobacco and vape shops. On the Consent Agenda (items approved without discussion) are public artworks for Twinbrook and College Gardens, tree conservation for the swim center, changes to the Youth Commission, and bus stop maintenance services, among others. They will also receive the 2023 annual report of the Cultural Arts Commission.

Following a comprehensive review of community feedback gathered through focus groups, the Mayor and Council will select a logo and tagline as the city’s official brand (page 90+). This recommendation comes after six focus groups of three people each, facilitated by Medium Giant, provided their preferences and perceptions of the community regarding the three final brand logos and taglines. The the newly elected Mayor and Council requested the focus groups to engage the community in the rebranding process. The selection of a definitive brand logo and tagline will mark the culmination of an extensive branding initiative that began in June 2022. The total cost of research, design, and implementation was not reported in the staff report.
The City’s Code of Ethics is being revised to reflect recent changes in Maryland’s ethics law (138). Changes under consideration include prohibiting former City officials or employees from disclosing confidential information; restricting City officials and employees from accepting gifts from entities representing counties and municipalities; modifying financial disclosure requirements; and adding an anti-retaliation provision for those reporting or participating in investigations of potential ethics violations. The Rockville Ethics Commission has reviewed the proposed amendments and upon adoption, chapter 16 of the City Code will be updated and the Financial Disclosure Forms will be revised.

Since at least 2019, Accessory Dwelling Units (ADUs) have been discussed as a means to diversify and increase affordable housing options in Rockville (p 161-222). The proposed ordinance, which has been reviewed by the Planning Commission and received lots of public comments, would allow detached ADUs as a conditional use in all residential zones, with regulations on the size, appearance, and parking requirements. It also addresses property ownership, occupancy, and compliance for existing non-compliant units. The Mayor and Council’s approval is needed to move forward with an ordinance, which is slated for presentation on August 5.
The Mayor and Council are conducting hybrid meetings. If you wish to submit comments in writing for Community Forum or Public Hearings, please email the comments to MayorAndCouncil@RockvilleMD.gov by no later than 10:00 a.m. on the date of the meeting.
More details in the 511-page agenda packet are available at https://www.rockvillemd.gov/AgendaCenter/ViewFile/Agenda/_07292024-7242.
In 1776, Independence Wasn’t Obvious
Today, as we celebrate our independence from Great Britain and look forward to the 250th anniversary in 2026, it’s important to reflect on the complex journey to liberty and freedom. While we grill hot dogs and slice watermelon, we might nostalgically view the decision for independence as an obvious one. However, it was a highly contentious process. If you think achieving national consensus is challenging today, consider 1776, when delegates from the colonies gathered in Philadelphia to debate independence. For instance, in December 1775, Maryland unanimously and vigorously voted against separation from Great Britain, declaring they were:
desirous to remove from the mind of the King, an opinion which we feel to be highly injurious to the people of this province and in order to manifest to his Majesty, to the Parliament, the people of Great Britain, and to the whole world, the rectitude and purity of our intentions in the present opposition to the measures of the British Ministry and Parliament, do declare, That the people of this province, strongly attached to the English constitution, and truly sensible of the blessing they have derived from it, warmly impressed with sentiments of affection for and loyalty to the House of Hanover, connected with the British nation by the ties of blood and interest and being thoroughly convinced, that to be free subjects of the King of Great Britain, with all its consequences is to be the freest members of any civil society in the known world, never did, nor do entertain, any views or desires of independency. That as they consider their union with the mother country, upon terms that may insure to them a permanent freedom, as their highest felicity, so would they view the fatal necessity of separating from her, as a misfortune next to the greatest that can befall them.
Maryland considered independence a “misfortune next to the greatest”? Why did they change their minds six months later?

Rent Stabilization, ADUs, and Vape Shop Regulations on July 8 Council Agenda
At its Monday, July 8, 2024 meeting, the Rockville Mayor and Council will receive public comments on the development of Champion Billiards at 900 Rockville Pike (adjacent to Twinbrook) and a process to amend neighborhood conservation districts (affects Lincoln Park). On the Consent Agenda (items approved without discussion) are $250,000 security system repair contract. The Mayor and Council will also consider changing the law on rent stabilization, detached accessory dwelling units, and regulating vape and tobacco shops. The Mayor and Council are now also holding meetings on Thursday mornings; those will rarely be discussed on this blog due to time constraints.
Champion Billiards Planned Development: The City Council will discuss a proposed amendment to the Champion Billiards Planned Development (PD), which aims to allow the development of 4,400 square feet of retail space with ancillary surface parking at 900 Rockville Pike (at Edmonston). This amendment replaces the previously approved plan for a furniture retail store. This particular site has a storied history and has been notoriously difficult to develop (see pages 12-228!). Formerly a gas station, this small parcel of land at the end of a long strip mall has faced numerous challenges due to its size, city easements, stormwater retention requirements, public art obligations, and the necessity to accommodate a sidewalk, bike path, and Bus Rapid Transit. Its location between the Pike (a state highway) and the railroad tracks (Metro) adds further complexity. Additionally, development efforts have been hampered by the adjacent property owner’s resistance to public access through his property, a matter that escalated to the Maryland Court of Special Appeals. Efforts to develop this site have been ongoing since 2006, and it’s remarkable that there is still interest despite the numerous obstacles.
Rent Stabilization: A staff report provides preliminary information on rent stabilization to discuss whether a new policy should be developed (pp 272-328). Incomes have not kept pace with rising rents, and low housing supply exacerbates the problem. The median rent in Rockville is $2,101 per month, requiring an income of $84,040 to afford it, marking a 34% increase since 2010. This rent level is similar to nearby areas like North Bethesda, Silver Spring, and Wheaton. In contrast, Takoma Park has lower rents due to its rent stabilization policy and limited new housing construction. Over 55% of Rockville renters are housing cost-burdened, with over 20% severely burdened, paying more than 50% of their income on housing. Hispanic, mixed-race, and Black households are disproportionately affected.
Detached Accessory Dwelling Units: The proposed change to the Zoning Code would allow detached ADUs in all residential-detached zones (R-400, R-200, R-150, R-90, and R-60)(pp 329-390). These ADUs would be located on the same lot as a single-unit detached dwelling. The amendment includes regulations for setbacks, and footprint and height limitations, with accessory buildings limited to a 750 square foot footprint and a maximum height of 20 feet, typically allowing for a second story. The term “accessory dwelling unit” has been updated to “detached accessory dwelling unit” for clarity and consistency with county, aligning with the previously adopted term “attached accessory dwelling unit.” These changes support the city’s Comprehensive Plan and aim to expand housing availability and affordability within the community.
Regulations for Vape and Tobacco Shops: The Mayor and Council are set to discuss the proposed zoning text amendment to regulate smoke shops, including vape and tobacco stores (pp 390-468). Staff recommends a zone-based regulation approach rather than extensive buffer requirements. Under this proposal, smoke shops would be prohibited in zones that permit retail use near or within residential neighborhoods. Specifically, smoke shops would not be allowed in the Mixed Use Commercial (MXC), Mixed Use Transition (MXT), and Mixed Use Neighborhood Center zones, as well as equivalent zones within Planned Developments (PDs). Permitted zones for smoke shops would include Mixed Use Business (MXB), Mixed Use Commercial Transition (MXCT), Mixed Use Corridor District (MXCD), Mixed Use Employment (MXE), Mixed Use Transit District (MXTD), and the Light Industrial (IL) Zone. This zone-based regulation aims to provide clear and consistent guidelines for the location of smoke shops, avoiding the complications of buffer requirements that could make existing smoke shops nonconforming due to nearby sensitive uses, such as childcare centers. The draft amendment does not include an amortization period for existing businesses to come into compliance with the new regulations.
Coming up on July 29: Rezoning 5906 Halpine Road, murals for Twinbrook and College Gardens, ordinances on vape and tobacco shops, floating zones, and conservation districts.
The Mayor and Council are conducting hybrid meetings. If you wish to submit comments in writing for Community Forum or Public Hearings, please email the comments to MayorAndCouncil@RockvilleMD.gov by no later than 10:00 a.m. on the date of the meeting.
More details in the 500-page agenda packet are available at https://www.rockvillemd.gov/AgendaCenter/ViewFile/Agenda/_07082024-7230.
Mayor and Council Adding Thursday Morning Meetings?
At its Thursday, June 27, 2024 meeting at 10:00 am, the Rockville Mayor and Council will only review an Consent Agenda (items approved without discussion), which is primarily focused on approving various contracts and agreements related to insurance, community services, and public works, totaling about $1.5 million.
Looks like the Mayor and Council is adding virtual Thursday morning meetings to dispense with simple items but it’s unclear why they’ve been removed from the Monday evening meetings. Consent Agenda items routinely require less than ten minutes of time total, so it’s not about saving time at the regular meetings. Hmm.
More details in the 152-page agenda packet are available at https://www.rockvillemd.gov/AgendaCenter/ViewFile/Agenda/_06272024-7221.



